California was already a state that tired to tax itself into prominence only to realize that the wealthiest people were very good at avoiding taxes, or that they decided to leave the state altogether. The state is strapped for cash and has been for many years.
Recently, left-wing governor Gavin Newsom has come under criticism by both sides of the political fence for cutting spending for K-12 schooling as well as impoverished seniors. The state is already running a lottery system full bore but as expected, it runs through that cash every year. California needs another source of funds. Enter sports betting.
States across the land have found that allowing sports betting and taxing it has provided a nice little shot of cash in the arm. But for California, a state of 40 million people, it would be a giant shot in the arm.
The state has a huge sports fan base and very popular and heavy bet teams like:
23 other states have legalized sports betting and have started to reap profits from it. It is actually surprising that California is behind on this subject matter. The state already legalized marijuana.
As per the LA Times it is estimated the state would glean $200M in the first year and could get as much as $500M-$700M after the system has been fully developed.
A state so strapped for cash most certainly will go the legal sports betting route. It is really only a matter of time.
